Ohio, US-based arc-welding and oxyfuel cutting equipment specialist Lincoln Electric Holdings, Inc. (Lincoln Electric) has announced that it has signed a definitive agreement to acquire ‘OOO Severstal-metiz: welding consumables' (Severstal-metiz), a manufacturer of welding consumables in Russia and a subsidiary of Russian steelmaker Severstal.
According to a Lincoln Electric statement on December 28, the transaction will include the acquisition of manufacturing operations and exclusive distribution rights of the Severstal brand of welding consumables. Financial terms were not disclosed. The transaction is under review by Russian regulatory authorities and is expected to close during the first half of 2011.
"This acquisition will add to our manufacturing capacity in this fast growing market and complement Mezhgosmetiz-Mtsensk OAO (MGM), our recent Russian acquisition," said John M. Stropki, chairman and chief executive officer of Lincoln Electric. "Severstal's extensive stick electrode offering, along with solid wire and flux cored wire products, when combined with solid wire products from MGM, will make Lincoln Electric a leading consumables manufacturer in the CIS countries. The two acquisitions complement our imported products offering and will expand our market presence in the region," the Lincoln Electric CEO added.
In addition to sites in Ukraine and Europe, Severstal-metiz's main manufacturing production facilities are based in Orel, Russia, with 283 employees. Severstal-metiz, which is estimated to have sales revenues of $40 million in 2010, is among the top European producers of wire and wire products, Lincoln Electric said.